Andrew
Tawanda Musarurwa and Prosper Ndlovu
WITH a Gross Domestic Product (GDP) of over US$100 million, Dubai – a key city in the United Arab Emirates (UAE) — presents extensive opportunities for Zimbabwe.
Latest trade data between Zimbabwe and Dubai show that the former posted significant upturn in exports to the latter, reaching US$1,4 billion in 2020, up from just above US$200 million in 2015.
To this extent Zimbabwe has grown to become one of Dubai’s top trading partners.
And this is why tomorrow’s Zimbabwe National Day at the ongoing Expo 2020 Dubai comes at an opportune time.
With President Mnangagwa leading the proceedings, the Zimbabwe National Day is an opportunity to both consolidate and broaden the economic ties between the two trade partners.
Zimbabwe’s participation at Expo 2020 Dubai — which commenced last October and concludes with the Zimbabwe National Day this week — has been marked by several key events, including the Global Business Forum for Africa, the Smart Cities Conference, Mines and Minerals Conference, Zimbabwe Tourism Conference, The Agriculture Conference, which were held in the Zimbabwe Pavilion.
These events were all structured to highlight milestones that can be achieved when meaningful collaborations and partnerships are forged.
While Dubai has been largely perceived as an oil-based economy, it is actually trade that lies at the core of Dubai’s economy.
The city operates two of the world’s largest ports and a busy international air cargo hub.
The enhancement of trade ties is therefore Zimbabwe’s biggest opportunity.
Trade growth is vital for the country’s broader economic vision of achieving an upper-middle income status by 2030, as it will be underpinned by an export-oriented economy.
In this regard, the country is already on the right path, if 2021 statistics are anything to go by. According to ZimTrade, Zimbabwe’s exports between January and December 2021 stood at US$6,03 billion, a 37,3 percent increase compared to US$4,39 billion recorded in the prior year.
The US$6,03 billion exports figure is the highest ever recorded.
The US$6,03 billion worth of exports achieved last year can be exceeded if Zimbabwe further taps into Dubai’s main exports, which include gold, base metals, food, chemicals, textiles and various primary products.
Food exports are a particularly enticing opportunity, as indicated by Dubai International Chamber’s director of international offices, Mr Omar Khan, during the Zimbabwe-Dubai Business Forum event at Expo 2020 Dubai last month.
This is because the UAE is a net importer of food products, which account for around 7,8 percent of its total imports.
“This offers a lucrative opportunity for Zimbabwean exporters to penetrate more the UAE and Dubai markets.
“As part of the UAE food security, the UAE has open trade and investment policies to support food production and trade,” said Mr Khan.
“UAE total imports of F&B (food and beverages) products reached US$5,1 billion in 2019 from US$0,8 billion in 2000.”
Currently, mineral commodities (mainly gold and diamonds) and tobacco account for over 85 percent of Zimbabwe’s exports to the UAE.
But with the country working to boost its horticulture output through the Horticulture Recovery and Growth Plan (2020 – 2025), which is already under implementation, horticulture exports are likely to continue to rise going forward.
“Currently, there is a growing demand for organic foods among consumers, as more people are becoming health conscious and looking for products that are high in nutrients and low in calories.
“Consumers are becoming more aware of foods containing synthetic pesticides and fertilisers and are switching to organic foods, which is driving the market growth of organic farming that is devoid of the chemicals used in crops,” says ZimTrade.
“Thus, by focusing on organic produce, there is potential for the horticulture sector to increase its contribution to national exports, ridding on improved production by smallholder farmers and rural communities.”
Online Reporter